NEW YORK (Reuters) - Brazilian meatpacker JBS and Mexico's Sigma Alimentos are among those competing to acquire Oscar Mayer, the hot dogs and cold cuts business of packaged food giant Kraft Heinz, according to people familiar with the matter.

The divestment of the popular hot-dog brand, which the sources said could fetch nearly $3 billion, would come as Kraft Heinz looks to reshuffle its portfolio to focus on more healthy food products as weight-loss drugs weigh on demand for processed foods.

Oscar Mayer has attracted interest from several potential buyers who have submitted initial bids in recent weeks, the sources said, requesting anonymity as the discussions are confidential.

A deal is still several weeks away from being finalized if the talks are successful, the sources added.

Kraft Heinz, which has a market value of nearly $43 billion, is hoping to command a valuation for Oscar Mayer equivalent to about 10 times its earnings before interest, taxes depreciation, and amortization of roughly $290 million, the sources said.

Kraft and JBS declined to comment. Sigma did not immediately respond to requests for comment. The Wall Street Journal reported in May that Kraft Heinz was looking to sell Oscar Mayer.

Dealmaking in the packaged food sector has been robust over the past year, as large snacking companies have grappled with lower demand due to the impact of high price inflation and weight-loss drugs.

Family-owned candy giant Mars agreed to buy Cheez-It maker Kellanova in August for nearly $36 billion, in what was one of the biggest packaged food deals of all time. J.M. Smucker acquired Twinkies maker Hostess Brands last year for $5.6 billion.

Under new Chief Executive Carlos Abrams-Rivera, Kraft Heinz has reorganized its brands into three separate portfolios as part of a broader effort to boost the company's share price, which is down about 4% this year. It has underperformed the S&P 500 Packaged Foods & Meats index, which has risen about 1% during the same period.

Oscar Mayer and other non-core brands like cheeses and coffees are currently grouped under the Balance division at Kraft Heinz.

Founded in 1883, Oscar Mayer is an iconic brand known for its hot dogs, cold cuts and bacon. Kraft Heinz wrote down the value of its Oscar Mayer and Kraft brands by $15.4 billion in 2019 after being hurt by lower demand from consumers.

JBS, which is the world's largest meatpacker, is controlled by J&F, a holding company owned by Brazilian billionaire brothers Joesley and Wesley Batista. It owns poultry company Pilgrim's Pride and distributes several other U.S. beef brands including Swift, Certified Angus Beef, Blue Ribbon Beef and Cedar River Farms.

Sigma Alimentos is the food subsidiary of Mexican conglomerate Alfa that produces and distributes meats, cheese, yogurts, and other refrigerated and frozen foods in the Americas, Mexico, and Europe. It has distributed Oscar Mayer products in Mexico since 1993.